AUDA-NEPAD launches Africa Green Transition PPP Fund

By Wakhungu Andaje

A new investment platform to finance Africa's green industrial future has been finally launched in Abidjan.

The Africa green transition PPP fund will channel blended finance and institutional capital into renewable energy, power transmission, water-energy projects and industrial decarbonisation across Africa.

The African union development agency (AUDA-NEPAD), together with the general partner of the Africa green transition PPP fund, together with ministerial segment of the specialized technical committee on trade, industry and minerals (STC-TTIM) launched the fund in Abidjan with a first closing targeted at the African business forum 2026.

The Africa green transition PPP fund (AGTPF) is a new public-private investment platform built to move green infrastructure projects from paper to construction. It will invest in renewable energy, transmission infrastructure, the water-energy nexus, industrial decarbonisation and climate-resilient infrastructure across the continent.

The Fund is structured as a Luxembourg SICAV-RAIF, a regulated investment vehicle that meets international institutional standards, while keeping African ownership, project origination and priorities at its centre.

In its first phase, AGTPF is targeting €500 million in committed capital to mobilize public, private and institutional investment into bankable projects that support Africa’s green industrialization, energy security and sustainable economic growth.

“Africa does not lack green projects but it lacks the platforms that turn preparation into investment and the Africa green transition PPP fund is built to close that gap, African-owned, institutionally credible, and aligned with the Union's priorities,” said Mrs. Nardos Bekele-Thomas, chief executive officer of AUDA-NEPAD. She stated that Africa loses many green projects at the stage between design and financing where plans are drawn up, feasibility studies are completed, and then the projects stall because the capital to build them is not available. The CEO said the fund will be designed to close that specific gap while complementing upstream preparation facilities, including the NEPAD infrastructure project preparation facility and the (PIDA) industrialization project preparation facility, besides supporting the continent's flagship infrastructure agenda, such as Agenda 2063, the programme for infrastructure development in Africa (PIDA), the continental power system masterplan, the African single electricity market and Mission 300. “The Africa green transition PPP fund has been established to bridge Africa's infrastructure financing gap by combining institutional capital, public-private partnerships, and robust risk mitigation to deliver bankable green infrastructure projects. Our pathway to first closing is focused on building a diversified pipeline of investment-ready assets, securing strategic anchor investors, and partnering with governments and development finance institutions to create scalable, commercially sustainable investment opportunities across the continent”, said Ukundi Baldwin Mushi Vanessa, general partner, X Green Capital Luxemburg GP S.á.r.l, Initiator of Africa green transition PPP fund (AGTPF), AGTPF is neither a European fund for Africa nor an African fund with European participation but is intentionally designed as a partnership of equals: African market and institutional expertise combined with European asset management, structuring and financing capabilities. “We are committed to achieving a disciplined first close that lays the foundation for long-term capital deployment and measurable development impact. The (AGTPF) has been designed to meet the expectations of institutional investors by combining robust Luxembourg fund governance with disciplined infrastructure investment practices. Our strategy is to build a diversified portfolio of bankable energy and sustainable infrastructure assets that deliver attractive long-term risk-adjusted returns while supporting Africa's green industrial transformation. We believe the fund provides an efficient platform for mobilizing international capital into projects that generate both financial performance and measurable development impact." Wolfgang Kröpfl general partner, X Green Capital Luxembourg GP S.á.r.l, Initiator of (AGTPF). "The signing of this memorandum of understanding with the (AGTPF) marks the beginning of an important institutional partnership to advance Africa's sustainable development agenda. It reflects our shared belief that Africa's long-term development is strengthened through greater collaboration among African institutions and by supporting African-led solutions that mobilize knowledge, partnerships, and investment for the continent's future." Meshack Bandawe, secretary general, Africa social security association (ASSA) The launch automatically incorporates the ministers of economy, finance, trade and industry from day one. Their policy and regulatory decisions determine which projects in Africa's infrastructure pipeline are bankable. The Abidjan launch secures that political backing. The Africa business forum 2026 will follow as the investor-facing platform where the fund works towards its first closing. The fund was launched alongside the AUDA-NEPAD programme for African developing island economies which are a natural early testing ground for AGTPF, with projects ranging from renewable energy to the decarbonisation of desalination plants. The launch turns political commitment into a live financing platform as the next test comes at the Africa business forum 2026, when (AGTPF) moves from securing government backing to closing capital, the point at which Africa's green infrastructure pipeline starts breaking ground rather than waiting for it. The (AGTPF) is a pan-African public-private investment platform structured as a Luxembourg SICAV-RAIF umbrella fund, established to mobilize institutional capital into sustainable infrastructure across all five African Union regions. The Fund invests in Greenfield and brownfield renewable energy assets, including utility-scale generation, battery energy storage systems, regional transmission infrastructure, the water-energy nexus, industrial decarbonisation and asset recycling. It targets projects ranging from sub-50 MW distributed infrastructure to utility-scale developments, deploying equity, quasi-equity, senior and subordinated debt, blended finance, guarantees and other risk mitigation instruments. AGTPF is aligned with the African Union Green recovery action plan, Agenda 2063, the African single electricity market, PIDA, the IFC performance standards and the Paris agreement.